The Benefits of Holding Ripple XRP
For the longest time, Ripple was called “the Bitcoin killer”. That’s a pretty bold statement, but the coin had means to back it up.
First of all, because Ripple is centralized, it thrives in its own designed and tailored ecosystem. This allows for the transactions that are made with the coin to be extremely fast, especially when compared to the speeds that Bitcoin provides.
Another huge reason for Ripple’s success is the coin’s position bank-vise. Ripple is partnered with more than 100 banks worldwide, allowing the coin to be accepted into the mainstream. If you have any knowledge on the topic of cryptocurrencies, you understand just how big of a deal this is.
Currently, there are governments in the world that outright ban cryptocurrencies from their countries. Ripple is the only crypto coin that has a green light – because it is centralized and regulated, institutions such as banks are more lenient and trustful towards it.
The system is pretty simple: upon Ripple’s release, 1 billion coins were issued to the public. The protocol was designed so that no more coins could be created – this means that when you use XRP in a transaction, the amount that you used is gone forever. The principle of scarcity is applied in this scenario – the less Ripple coins there are, the more valuable they become, just like gold or diamonds.
With the crypto market being so volatile, it’s tough to say if this principle works or not. However, the fact that Ripple is still in the 3rd spot in the market position and that people are still looking for how to buy Ripple should probably be a good indicator.
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